Subscribe to this blog

Follow by Email

GETTING INFO ON BLOCK CHAIN TECHNOLOGY AND THE BITCOIN RUSH

If you are an adept financial trend enthusiast and interested about
digital streams of income, you surely must have heard about Bitcoin . I
know you may be a little bit confused but i will attempt to try and
break it down in a series of articles that may convert you and me into
Bitcoin believers.

Bitcoin was invented as a peer-to-peer system for online payments,
it does not require a trusted central authority. Since its inception in
2008, Bitcoin has grown into a technology, a currency, an investment
vehicle, and a community of users.

Bitcoin’s rise to prominence is causing a global rethink of the
concept of money. For thousands of years, gold was the currency of the
land, and many of gold’s qualities have allowed it to stand the test of
time. As civilization developed and industrialized, ruling bodies
learned that printing a government’s own currency, called fiat, was a
more convenient and easier method of distributing wealth in society.
However, government-backed money has not stood the test of time; the average life of fiat currency is only 27 years.
History is littered with examples of the failure of money, such as the
Mark in post-WWI Weimar Germany and the Greek drachma in 1944.

Fast forward to the 21st century, where there are more mobile phones than there are people on earth, and perhaps it makes sense for a more global form of money to exist. Bitcoin is exactly that: a universal, internet currency that can work on any computer or mobile phone.

Bitcoin allows for trust between two unrelated parties over an
untrustworthy network like the Internet, with just a mobile phone any
two parties can now transact without a central authority, company or
bank mediating the transaction and in such a way that is safe and
secure, publicly known, and un contestable.

ORIGIN OF BITCOIN

Similar to the way e-mail is a messaging rail that exists freely on
the Internet for anyone to use globally 24/7, bitcoin is a payments rail
that also exists freely on the Internet for anyone to use globally
24/7. Bitcoin (a crypto-currency, abbreviated BTC) was released in
January of 2009 as a first-of-its-kind free payments system.
It does not require a credit card, bank account or the divulging of
any personal identification to use or acquire. The catch is that you’re
not using any government-backed fiat currency in this system. It uses a
new currency altogether: bitcoin.

Before bitcoin was released there was a white paper entitled
“Bitcoin, a Peer-to-Peer Electronic Cash System”, that was published in
November 2008 by Satoshi Nakamoto.
Satoshi is an alias, and this creator of bitcoin has chosen to remain anonymous even to this day.
Bitcoin enables users to remit money in minutes, for a fraction of
the cost, using only a cell phone. Further, Bitcoin provides the rails
to go from one currency to another using the Internet as a middleman
(which is free) instead of companies like Western Union (not free).

Where do Bitcoins come from?

Some users put their computers to work verifying transactions in the
peer-to-peer network mentioned above. These users are rewarded with new
bitcoins proportional to the amount of computing power they donate to
the network.
This process is called “Mining”

Mining is the term used for running a series of calculations on a
computer to verify the transactions that take place in the Bitcoin
network. About every ten minutes, a new block of transaction data is
created and the miners who created the block are awarded a few bitcoins.
This serves the Bitcoin network both as a system to verify transactions
and as a system for fairly distributing new bitcoins.

The process of adding transaction records to Bitcoin’s public
ledger of past transactions. This ledger of past transactions is called
the block chain as it is a chain of blocks. The block chain serves to
confirm transactions to the rest of the network as having taken place.
Bitcoin nodes use the block chain to distinguish legitimate Bitcoin
transactions from attempts to re-spend coins that have already been
spent elsewhere Bitcoin nodes use the block chain to distinguish
legitimate Bitcoin transactions from attempts to re-spend coins that
have already been spent elsewhere.

Although it used to be profitable to mine Bitcoins with your standard
personal computer, the cost of the electricity necessary to do so is
now greater than the value of the bitcoins you could mine. Profitable
mining now requires specialized hardware that can perform more
computations with greater power efficiency.
In the next article we will discuss in detail the intricacies that is involved in mining and the pros and cons of being a miner.

If you are an organization offering different services in the Bitcoin
process contact me for vetting and analysis and I might include your
name in the articles to follow.

Popular posts from this blog

The National Association of liberation Tigers (NALT); a civil society social movement of over 10,000 Nigerian
citizens from different disciplines across the globe, joins the rest of the world to condemn the recent attacks on
foreigners especially Nigerians and other Africans nationals in South Africa.

This sad turn of events is a departure
from the continent's ongoing re-visioning of African integration as a panacea for African solutions to African
problems.
NALT decries that this is a set back to our collective will as Africans in stretching out hands of friendship and
goodwill across borders.
This further undermines the position of our continent as the new investment destination
of the world as well the emerging global power block.

The 2nd edition of the Calabar Bikers Parade held over the weekend was a fantastic display of Bikers with their various Bikes and Costumes.

The Event did not start
as planned following a failure in the engine of the Cross River Governor,
Senator Ben Ayade’s bike , however the former Governor Donald Duke stole the
show with a Batman styled bike.

My very close friend Olubusola Mada had some concerns she wanted to express on the MMM Phenomenon currently taking over Nigeria, so she decided to write this impassioned article on why people should not participate in the Scheme.

Read Below.

My
parents invested so much in me so that I can differentiate between the
truth and a farce, they let me know that if I’m too greedy I’ll loose my
investment funds and when an opportunity seem too juicy with seemly
little or no risk involved, I should take my time to analyze it,
escalate to people who may know about it, listen to advice before going
into it.